Porter regarded understanding both the competitive forces and the overall industry structure as crucial for effective strategic decision-making in porter's model, the five forces that shape.
Advertisements: read this article to know about michael porter’s five forces model to analyse competitive industry structure an industry is a group of firms that market products which are close substitutes for each other, (eg the car industry, the travel industry. The most influential analytical model for assessing the nature of competition in an industry is michael porter’s five forces model, which is described below: porter explains that there are five forces that determine industry attractiveness and long-run industry profitability.
The industry comprises of warehousing, courier, shipping, road, rail and air cargo (chhilwar, 2015) it is collaboration of supply chain, product management and distribution it is a combination of tasks that takes place from the point of origin to the point of consumption.
The industry competitiveness and outlook have been reviewed the tools and techniques such as strategic group mapping,pestle analysis, porter’s five forces model of competition, soot analysis, key success factors (sf), five basic generic business strategies and other strategies like alliance, diversification, etc were applied.
Porter’s five forces model porter’s five forces model is an analysis tool that uses five forces to determine the profitability of an industry and shape a firm’s competitive strategy it is a framework that classifies and analyzes the most important forces affecting the intensity of competition in an industry and its profitability level. Porter's five forces is a framework for analysis of industry and development of business strategy, it also determines the competitive intensity and attractiveness of a market attractiveness is with regard to overall profitability of industry while unattractiveness drives down profitability. Porter's five forces framework is a tool for analyzing competition of a business it draws from industrial organization (io) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack of it) of an industry in terms of its profitability an unattractive industry is one in which the effect of these five forces reduces overall profitability.
Recent developments in indian shipping industry indian shipping industry contributed 8% of the entire world trade in terms of volume, which has the contribution of nominal 13% in monetary terms india and china were in the same position 30 years ago, but today china has raced ahead in the field.